BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2216


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          Date of Hearing:  April 12, 2016


                            ASSEMBLY COMMITTEE ON HEALTH


                                   Jim Wood, Chair


          AB 2216  
          (Bonta) - As Amended March 28, 2016


          SUBJECT:  Primary care residency programs: grant program.


          SUMMARY:  Establishes the Teaching Health Center (THC) Primary  
          Care Graduate Medical Education Fund for purposes of funding  
          primary care residency programs.  Specifically, this bill:  


          1)Establishes the Teaching Health Center Primary Care Graduate  
            Medical Education Fund (Fund) in the State Treasury.


          2)Requires the Director of the Office of Statewide Health  
            Planning and Development (OSHPD) to award planning and  
            development grants from the Fund to teaching health centers  
            for the purpose of establishing new accredited or expanded  
            primary care residency programs.


          3)Provides that grants awarded must not be for more than three  
            years and that the maximum award to a teaching health center  
            must not be more than five hundred thousand dollars  
            ($500,000).


          4)Specifies that grants be used to cover the costs of  








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            establishing or expanding a primary care residency training  
            program, including costs associated with curriculum  
            development, recruitment, training, and retention of residents  
            and faculty, accreditation by the Accreditation Council for  
            Graduate Medical Education (ACGME), the American Dental  
            Association (ADA), or the American Osteopathic Association  
            (AOA), faculty salaries during the development phase, and  
            technical assistance.


          5)Requires OSHPD, subject to an appropriation by the  
            Legislature, to award sustaining grants from the Fund to THCs  
            operating primary care residency programs accredited by the  
            ACGME, ADA, or AOA, and requires OSPHD to determine the amount  
            of grants awarded per resident by taking into account the  
            direct and indirect costs of graduate medical education.


          EXISTING LAW:  


          1)Establishes OSHPD to, among other functions, collect data and  
            disseminate information about California's health care  
            infrastructure, promote equitable distribution of health care  
            outcomes, and publish information about health care outcomes.

          2)Establishes the California Healthcare Workforce Policy  
            Commission (Commission) and requires the Commission to, among  
            other things, identify specific areas of the state where unmet  
            priority needs for primary care family physicians and  
            registered nurses exist; establish standards for family  
            practice training programs, family practice residency  
            programs, primary care physician assistants programs, and  
            programs that train primary care nurse practitioners; and,  
            review and make recommendations to OSHPD concerning the  
            funding of those programs that are submitted to the Health  
            Professions Development Program for participation in the state  
            medical contract program.









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          3)Establishes the Health Professions Education Foundation (HPEF)  
            within OSHPD.  Requires the HPEF to solicit and receive funds  
            from foundations and other private and public sources and to  
            provide financial assistance in the form of scholarships or  
            loans to students in the health professions who are from  
            underrepresented groups.  Provides that HPEF governed by a  
            board consisting of 13 members appointed by the Governor,  
            Speaker of the Assembly, and Senate Rules Committee.



          4)Establishes, under the HPEF, scholarship, loan, and loan  
            repayment programs for registered nurses, vocational nurses,  
            geriatric nurse practitioners, clinical nurse specialists, and  
            mental health professionals who agree to practice for  
            specified periods of time in underserved areas and in  
            designated practice settings.  



          5)Establishes, under HPEF, the Steven M. Thompson Physician  
            Corps Loan Repayment Program (STPCLRP), which provides for the  
            repayment of educational loans for licensed physicians and  
            surgeons who practice in medically underserved areas of the  
            state.  Requires HPEF, in administering the STPCLRP, to use  
            and develop guidelines for applicants that give preference to  
            applicants who are best suited to meet the cultural and  
            linguistic needs of patients in medically underserved  
            populations, as specified, and who agree to practice in  
            geriatric care settings.  Also allows HPEF to appoint a  
            selection committee to provide policy direction and guidance  
            to the STPCLRP.  Requires funds for loan repayment under the  
            STPCLRP to have a funding match from a foundation or other  
            private source.  Establishes a Medically Underserved Account  
            for Physicians within the Fund, the primary purpose of which  








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            is to provide funding for the STPCLRP.  



          6)Establishes within OSHPD the Health Professions Education Fund  
            to receive funds for scholarships and loans to students from  
            underrepresented groups who are enrolled in or accepted to  
            schools of medicine, dentistry, nursing, and other health  
            professions.  Provides that moneys in the fund are  
            continuously appropriated.



          7)Establishes the Song-Brown Health Care Workforce Training Act  
            of 1973 (Song-Brown Act), administered by OSHPD to provide  
            financial support to family practice residency programs, nurse  
            practitioner and physician assistant programs, and registered  
            nurse education programs to increase the number of students  
            and residents receiving education and training in family  
            practice and nursing.  The Song-Brown Act also encourages  
            universities and primary care health professionals to provide  
            health care in medically underserved areas.  


          FISCAL EFFECT:  This bill has not been analyzed by a fiscal  
          committee.


          COMMENTS:  


          1)PURPOSE OF THIS BILL.  According to the author THCs are a  
            proven model for addressing the primary care provider shortage  
            that six of nine California regions face.  The author notes  
            that 40% of THC graduates entering into primary care practice  
            in nonprofit, community health centers in underserved  
            communities as opposed to just 4% of traditional medical  
            residents.  The author concludes that this bill will help  
            ensure California has a sufficient supply of health workforce  








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            professionals to serve the needs of our diverse state.



          
          2)BACKGROUND.  


             a)   Primary Care in California.  California is home to the  
               largest number of primary care physicians and nurse  
               practitioners in the country.  However, the state ranks  
               23rd in the number of primary care physicians per resident.  
                An August 2014 report by the California HealthCare  
               Foundation states that California has only 35 to 49 primary  
               care physicians per 100,000 Medi-Cal enrollees.  Federal  
               guidelines call for the state to have 60 to 80 doctors per  
               100,000 patients.  The supply of primary care physicians  
               also varies substantially across California's counties.   
               The number of primary care physicians actively practicing  
               in California counties is, in too many cases, at the bottom  
               range of, or below, the state's need.  According to 2011  
               Health Resources and Services Administration (HRSA) data,  
               29 of California's 58 counties fall at the lower end, or  
               below, the needed supply range for primary care physicians.  
                In other words, half of Californians live in a community  
               where they do not have adequate access to the health care  
               services they need.  


             b)   The Teaching Health Center Graduate Medical Education  
               (THCGME) program.  THCGME, funded since 2011 and set to  
               expire in 2015, has increased the numbers of primary care  
               physicians and dentists training to care for underserved  
               populations nationwide. Without continued federal funding,  
               most of these THCs report that they would be unlikely to  
               continue current residency recruitment and enrollment,  
               threatening the initial program investments and even the  
               viability of the program itself.









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               According to a 2015 Robert Graham Center report, "Teaching  
               Health Center GME Funding Instability Threatens Program  
               Viability," residents who train in underserved settings are  
               more likely to continue to practice in similar  
               environments.  The THCGME program supports new and expanded  
               community-based primary care training programs.  
               Organizations that can qualify to be THCs include federally  
               qualified health centers, rural health clinics, and tribal  
               clinics-all organizations that care for the underserved.   
               Unlike most other GME payments, funds flow directly to the  
               community-based, ambulatory patient care centers where  
               residents train, instead of teaching hospitals.  The  
               investment of $230 million over five years (2011 to 2015)  
               represents 0.3% of the annual $15 billion federal GME  
               funding that supports more than 120,000 residents in  
               training each year nationwide.  THCGME will expire in 2015  
               if there is no congressional action to extend it.


               Since their creation under the Patient Protection and  
               Affordable Care Act (ACA) six THCs have opened in  
               California, however they are in danger of closing due to  
               the uncertain funding.  They are located in Modesto,  
               Fresno, San Bernardino, Redding, Bakersfield, and San  
               Diego.


               Nationally, the majority of THCGME supported programs are  
               just beginning to have their first graduating classes.  The  
               first grants did not start in California until fiscal year  
               2011 for Academic Year 2011-2012.  Primary care residencies  
               are three years long.





               According to a California Primary Care Association (CPCA)  








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               January 2015 report, "Horizon 2030," preliminary results  
               from the national study demonstrate positive and promising  
               results for THCGME.  Most notably:





               i)     Almost all (91%) of THC graduates remain in primary  
                 care practice, compared to less than one-quarter (23%) of  
                 traditional GME graduates;
               ii)    About three times as many THC graduates (76%) choose  
                 to practice in underserved communities, compared to 26%  
                 of traditional graduates;


               iii)   Almost four times (21%) as many THC graduates enter  
                 practice in rural areas, versus 5% of traditional  
                 graduates;


               iv)    Forty percent (40%) of THC graduates go on to  
                 practice at Community Clinic Health Centers, compared to  
                 2% of traditional graduates; and, 


               v)     Most (66%) of the initial THC graduates continue to  
                 practice in the states where they were residents. 





          3)SUPPORT.  CPCA is the sponsor of this bill and states that  
            this bill will help address California's primary care provider  
            shortage by establishing the Fund, providing planning and  
            development grants to THCs for the purpose of establishing new  
            accredited or expanded primary care residency programs, and  
            make available sustaining grants to ensure the continued  








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            operation of accredited THCs.  CPCA estimates that 8,243  
            additional primary care physicians will be needed in  
            California by 2030, and notes that with dwindling federal  
            support for current THC sites and no federal investment to  
            develop new sites, California must prioritize and demonstrate  
            its commitment to providing access to primary care through a  
            greater investment in the THC model.


            The County Health Executives Association of California and the  
            California School Employees Association support this bill,  
            noting that, since the passage of the ACA, the workforce of  
            primary care physicians in California has not kept pace,  
            especially with increasing enrollment in Medi-Cal, and this  
            bill will assist in meeting the need for physicians to serve  
            the growing number of newly insured and Medi-Cal patients. 


            The Association of California Healthcare Districts (ACHD)  
            states, healthcare districts located in rural and remote areas  
            of the state have a difficult time recruiting health  
            professionals to their areas.  ACHD notes that THCs are on the  
            leading edge of innovation educational programming dedicated  
            to ensuring a relevant and sufficient supply of health  
            workforce professionals, however due to limited and uncertain  
            federal funding the six programs in California are in jeopardy  
            of closing.  ACHD concludes that this bill will support the  
            expansion of primary care residency programs in California.


          4)OPPOSITION.  The California Right to Life Committee, Inc.  
            opposes this bill stating that because the definition of a  
            California Primary Care Residency Program includes obstetrics  
            and gynecology, they are assuming that Title X and family  
            planning education will be included in the medical education  
            for the residency program.


          5)RELATED LEGISLATION.  








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             a)   AB 2048 (Gray) requires OSHPD, in its administration of  
               the National Health Service Corps State Loan Repayment  
               Program (SLRP), to include all federally qualified health  
               centers (FQHCs) located in California on the program's  
               certified eligible site list.  AB 2048 is currently pending  
               in the Assembly Appropriations Committee.  


             b)   SB 22 (Roth) appropriate $300 million from the General  
               Fund to the director of OSHPD for the purpose of funding  
               new and existing GME physician residency positions, and  
               supporting training faculty.  SB 22 is currently pending in  
               the Assembly Rules Committee.


          6)PREVIOUS LEGISLATION.  


             a)   SB 1416 (Rubio) of 2012 would have created the Graduate  
               Medical Education Trust Fund for the purpose of funding  
               grants to graduate medical education residency programs in  
               California, and would have required OSHPD to develop  
               criteria for distribution of available moneys.  SB 1416 was  
               held in the Assembly Appropriations Committee



             b)   AB 589 (Perea), Chapter 339, Statutes of 2012,  
               establishes the Steven M. Thompson Medical School  
               Scholarship Program and would provide that the program is  
               open to persons who agree in writing, prior to entering an  
               accredited medical or osteopathic school, to serve in an  
               eligible practice setting, as defined, for at least three  
               years. 











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             c)   SB 635 (EHernandez) of 2011 would have required funds  
               deposited in the Managed Care Administrative Fines and  
               Penalties Fund in excess of $1 million be transferred each  
               year to OSHPD for the purposes of the Song-Brown Program.   
               SB 635 was held in the Assembly Appropriations Committee.



             d)   TECHNICAL AMENDMENT.  As currently drafted this bill  
               requires OSHPD to award sustaining grants from the Fund to  
               THCs operating primary care residency programs accredited  
               by the ACGME, ADA, or AOA, and requires OSPHD to determine  
               the amount of grants awarded per resident by taking into  
               account the direct and indirect costs of graduate medical  
               education, but does not define what a "sustaining grant"  
               is.  This bill should be amended as follows:


               On page 3, between lines 31 and 32 insert:  (c) For  
               purposes of this section, "sustaining grant" means a grant  
               awarded to ensure the continued operation of an accredited  
               teaching health center, whether that accreditation is first  
               awarded pursuant to the process created by this article or  
               the accreditation is awarded prior to enactment of this  
               article.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Primary Care Association (sponsor)


          Alameda Health Consortium








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          AltaMed Health Services Corporation


          Ampla Health


          Association of California Healthcare Districts


          Community Clinic Association of Los Angeles County
          California School Employees Association


          Clinica Sierra Vista


          Community Clinic Consortium


          Community Health Center Network


          County Health Executives Association of California


          Family Health Centers of San Diego


          Health Alliance of Northern California


          Health and Life Organization, Inc.


          Kheir Center










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          Marin Community Clinics


          Mountain Valleys Health Centers


          North Coast Clinics Network


          North County Health Services


          North East Medical Services


          Omni Family Health


          Open Door Community Health Centers


          Ravenswood Family Health Center


          Redwood Community Health Coalition


          San Ysidro Health Center


          St. John's Well Child & Family Center


          Tiburcio Vasquez Health Center, Inc.


          Valley Community Healthcare










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          Western Sierra Medical Clinic


          White Memorial Community Health Center







          Opposition


          California Right to Life Committee, Inc.







          Analysis Prepared by:Lara Flynn / HEALTH / (916) 319-2097